Navigating Legal Pitfalls in Sports-Tied Promotions: SoFi’s “They Shoot, You Score” Campaign
The Intersection of Sports and Promotional Risk
As brands increasingly tie marketing campaigns to live sports events—like SoFi’s 2025 NBA Play-In Tournament promotion “They Shoot, You Score”—legal teams must navigate complex compliance frameworks. This analysis explores the legal tightrope of such promotions, using SoFi’s initiative as a case study for businesses seeking viral engagement without regulatory blowback, particularly those in the tech and fintech sectors.
Key Legal Challenges in Sports-Linked Promotions
1. The Lottery Trap: When Chance, Prize, and Consideration Collide
Under U.S. law, a promotion risks classification as an illegal lottery if it includes three key elements:
- Prize: SoFi offers rewards points, potentially up to $200 per participant, based on game events, with a substantial total prize pool announced.
- Chance: The awarding of the prize depends entirely on the random occurrence of specific actions (bank shots) by NBA players during tournament games—an outcome outside the participant’s control or skill.
- Consideration: Entry appears linked to actions requiring financial commitment or significant effort from the participant. This includes requirements like opening a SoFi Checking and Savings account with a qualifying direct deposit or paying a monthly fee for a SoFi Plus subscription.
Why It Matters for Tech & Fintech Brands:
Many tech and fintech companies incentivize user sign-ups or subscriptions with rewards. However, linking these financial commitments directly to a chance-based outcome, as seen in this promotion structure, raises significant concerns under lottery law in many jurisdictions. Running an illegal lottery can lead to severe penalties.
2. The Missing Alternative Method of Entry (AMOE): A Compliance Gap
Crucially, the “They Shoot, You Score” promotion does not appear to offer a free Alternative Method of Entry (AMOE) based on publicly available descriptions. Requiring a purchase, payment, or significant effort (like setting up direct deposit) to enter a chance-based promotion generally violates federal and state laws. These laws mandate a “no purchase necessary” or free entry option for lawful sweepstakes.
Actionable Insight:
To mitigate risk, promotions structured like sweepstakes must include a clearly disclosed, easily accessible, free method of entry. Common examples include a mail-in postcard entry or a free online form. This free method must provide equal odds of winning compared to any entry method involving a purchase or commitment.
3. State-Specific Compliance Hurdles
Promotions available nationally must comply with a complex web of individual state laws:
- Registration & Bonding: Certain states, notably Florida and New York, often require sponsors to register the promotion and post a financial bond if the total prize value exceeds a specific threshold (commonly $5,000).
- Prize Restrictions: Some states impose limits on prize values or prohibit certain types of prizes in promotions.
- Disclosure Requirements: States mandate that the official rules be clear, conspicuous, and comprehensive. This includes detailing eligibility requirements, the exact entry methods (including any AMOE), precise prize descriptions, how winners are selected, and the odds of winning.
Why Tech and Fintech Brands Should Pay Close Attention
- Subscription Models & Promotions: Fintechs frequently use subscription models or require account funding as part of their business. Tying these core business actions directly to entry in a chance-based promotion without a free alternative pathway is legally hazardous.
- Regulatory Scrutiny: Financial services companies generally face heightened oversight from regulators. Promotions deemed illegal lotteries can attract significant fines, enforcement actions, and negative publicity.
- Complex Customer Journeys: Digital onboarding flows, like opening accounts or setting up direct deposits, can inadvertently constitute illegal consideration if they are mandatory steps for entering a chance-based promotion.
4-Step Compliance Checklist for Engaging Campaigns
- Identify the Structure: Correctly classify your promotion. Is it a skill contest (judged based on objective criteria)? Or is it chance-based? If chance-based, is consideration required? If yes, it risks being an illegal lottery unless structured as a compliant sweepstakes.
- Eliminate or Mitigate Consideration: For any chance-based promotion that involves considerations, always include a free AMOE. Ensure this free method is clearly communicated and offers the same chance of winning as any paid or purchase-related entry method. Critically, ensure the act of entering is separate from mandatory purchases or financial commitments.
- Review State Laws: Before launch, verify and comply with all registration, bonding, and disclosure requirements for every state where the promotion will be offered. Pay particular attention to historically stringent states like Florida, New York, and Rhode Island.
- Draft Comprehensive Official Rules: Create clear, unambiguous rules covering all essential elements: eligibility criteria (age, residency), exact start/end dates, detailed descriptions of all entry methods (especially the AMOE), how winners will be selected, full prize details, approximate odds of winning, limitations of liability, and complete sponsor information.
Takeaways: Balancing Innovation and Compliance
SoFi’s “They Shoot, You Score” promotion serves as a useful example of the legal complexities involved when linking financial products, subscription models, and chance-based rewards to high-profile live events. For tech and fintech brands striving for innovative and engaging marketing, meticulous adherence to promotional laws, especially regarding the element of consideration and the necessity of a free AMOE for chance-based promotions, is essential. Proactive legal review and careful structural design are critical to ensure exciting campaigns achieve their marketing goals without crossing into illegal territory.
